Question
Cali's Kennels needs help understanding her Cost of Goods Sold and Ending Inventory balances for the month of October 2020. Using the following information, please
Cali's Kennels needs help understanding her Cost of Goods Sold and Ending Inventory balances for the month of October 2020. Using the following information, please record the required journal entries for the month of October and determine the total cost of good sold and ending inventory balances. Kali's Kennels uses a perpetual inventory system and costs inventory using the first in, first out (FIFO) method.
Inventory Balance (units), October 1, 2020: 160 units
Inventory Balance ($), October 1, 2020: $2,560
Purchases | Units | Unit Cost | |
03-Oct | 90 | $20 | |
12-Oct | 130 | $15 | |
24-Oct | 150 | $14 | |
Sales | Units | Selling Price | |
18-Oct | 225 | $30 | |
28-Oct | 230 | $30 |
Note: All purchases and sales are done on credit.
Required:
1) Required Journal Entries to record all inventory purchases and sales.
2) Determine the Cost of Goods Sold for October 2020 (units and dollars).
3) Determine the Ending Inventory as at October 31, 2020 (units and dollars).
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